Personal Loans Snapshot: March 2022

Personal Loans Snapshot: March 2022

As we start a new season and look back on how personal loan interest rates have performed over the past few months, we saw several rate cuts.

We also saw the ever-growing list of low rate loans available for environmentally friendly product purchases continue to grow, with the addition of a new Green Car Loan from MOVE Bank.

Looking at the latest ABS Lending Indicators release, there was a 0.8% increase in fixed-term personal loan commitments (seasonally adjusted) in January 2022. Not much change from December’s 0.7% increase in fixed-term personal loans from the month prior.

Additionally, the release reported a 0.9% increase in new loan commitments for road vehicles, following December’s 0.6% decrease. On the other hand, new loan commitments for personal investment saw a 2.2% drop following a massive 17.4% increase in December 2021.

Interestingly the report also noted a significant 41.6% increase in new loan commitments for business construction (typically volatile series), indicating a growing trend in home renovations.

Personal loan interest rate changes:

Here’s what’s been going on with personal loan interest rates and offer changes as of late:

Interest rate cuts:

  • BankVic cut 200 basis points of its variable rate Unsecured Personal Loan, bringing it down to 7.95% p.a. (8.08% p.a. comparison rate*).
  • Bendigo Bank cut 180 basis points of its secured Green Personal Loan fixed rates, which now sits at 4.99% p.a. (5.70% p.a. comparison rate*) and 480 basis points of its unsecured option, bringing it down to 6.99% p.a. (7.55% p.a. comparison rate*).
  • Teachers Mutual Bank dropped its fixed unsecured All Purpose Personal Loan rate down 49 basis points to 8.50% p.a. (8.64% p.a. comparison rate*).

Interest rate increases:

  • Commonwealth Bank upped its fixed Unsecured Personal Loan rate by 250 basis points to 11.50% p.a. (12.38% p.a. comparison rate*).
  • Police Credit Union increased its fixed Better Car Loan special offer rate by 100 basis points up to 5.44% p.a. (5.71% p.a. comparison rate*)

Which lenders stand out?

Once again, we see that the lenders with the lowest personal loan interest rates in the Mozo database are Community First Credit Union, Alex Bank, Transport Mutual Credit Union and Credit Union SA - showing that smaller banks and credit unions are where it’s at if you want a more competitive rate.

How about big-name lenders?

After several months of little change among big bank personal loan interest rates, we saw the Commonwealth Bank increase its unsecured personal fixed rate up to 11.50% p.a. (12.38% p.a. comparison rate*) from 9.00% p.a. (9.90% p.a. comparison rate*)

It’s also worth noting that rates from the major banks tend to be much higher than most competitor lenders. Currently, the Commonwealth Bank’s Unsecured Variable Personal Loan interest rate sits at just 9.00% p.a., a fair jump compared to the lowest interest rate in the Mozo database of 3.99% p.a.

Variable rate big 4 personal loans:

At the moment, the lowest big bank variable rate personal loan interest rate in the Mozo database is the NAB Personal Loan (Variable, Unsecured), at 6.99% p.a. (7.91% p.a. comparison rate*).

As for the highest big bank variable rate personal loan in the Mozo database, that would be the Commonwealth Bank Unsecured Variable Personal Loan at 11.50% p.a. (12.38% p.a. comparison rate*).

Fixed rate big 4 personal loans:

In terms of fixed-rate personal loans, the lowest big bank fixed rate in the Mozo database is none other than NAB’s Personal Loan (Fixed, Unsecured), which offers a 3-year fixed rate of 6.99% p.a. (7.91% p.a. comparison rate*).

Once again, the highest fixed-rate big bank personal loan in the Mozo database is the Commonwealth Bank’s Unsecured Personal Loan (Fixed) which increased up to a 3-year fixed rate of 11.50% p.a. (12.38% p.a. comparison rate*) last month.

Personal loan rates of note in March:

Looking for more personal loan options? Then check out our personal loans comparison tool below to start comparing personal loan options today!

Compare Personal Loans today - last updated 14 May 2022

Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.35% p.a.to 19.09% p.a.
    6.14% p.a.to 19.99% p.a.based on $30,000
    over 5 years

    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.35% would cost $34,832.61 including fees.

    Details
  • Home Improvement Loan

    Fixed, Unsecured

    interest rate
    comparison rate
    Monthly repayment
    5.75% p.a.
    5.96% p.a.based on $30,000
    over 5 years

    Handypay offers flexible home improvement loans for Excellent Credit or better. Handypay is a specialist home improvement plan provider and offers loans up to $75,000.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $34,840.18 including fees.

    Details
  • Personal Loan

    Unsecured, Fixed, Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    6.39% p.a.to 7.89% p.a.
    6.39% p.a.to 8.49% p.a.based on $30,000
    over 5 years

    With low rates for borrowers with excellent credit, a quick 1 minute rate estimate and simple online application, there’s a lot to love about this loan! You’ll not only benefit from no exit fees, there are also no early repayment fees. You could qualify by simply earning above $25,000 and you’ll be on the way to start spending (other eligibility criteria may apply).

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 6.39% would cost $35,126.40 including fees.

    Details
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.95% p.a.to 17.45% p.a.
    6.79% p.a.to 17.86% p.a.based on $30,000
    over 5 years

    Wisr offers personal loans for any worthwhile purpose, tailored to your credit score to ensure you’re getting a fair deal. Plus, no ongoing or early exit fees. Loans from $5,000 to $79,000. Terms of either 3, 5 or 7 years. $595 establishment fee. Eligibility criteria applies.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 5.95% would cost $35,352.21 including fees.

    Details

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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